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Download the complete Business administration project topic and material (chapter 1-5) titled EFFECT OF LEADERSHIP STYLES ON WORKERS PERFORMANCE IN THE BANKING INDUSTRY (A CASE STUDY OF HOUSING FINANCE BANK NAKASEERO BRANCH) here on PROJECTS.ng. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Click the DOWNLOAD NOW button to get the complete project work instantly.



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The study aimed at assessing effect of leadership styles on workers performance in the banking industry. The objective of this study was to identify the style or styles of leadership adopted by the managers, and examine its effect on workers’ performance, which invariably translated to organizational performance.A case study approach survey research strategy was adopted in which 16 usable structured questionnaires were collected from 30 questionnaires distributed. The leadership styles were measured through the Multi factor Leadership Questionnaire developed by Avolio and Bass (1995), modified to fit the context of the study. Employee performance was measured by the scale of Yousef (2000). Descriptive techniques were used for data analysis to assess both relationships and effects as per the hypotheses of the study. The findings show that Democratic leadership style is the most exhibited style at the bank followed by the transactional leadership style and Autocratic. Workers performance is above average. Overall, scores in Democratic leadership style were found to be strongly related with both measures of employee performance and overall performance except for the intellectual simulation dimension, which had insignificant positive correlation with quality of performance. Autocratic leadership style was found to be negatively related with both measures of employee performance as well as overall performance. The results suggest that supervisors in organizations need to use a lot of transformational leadership behaviours or rather embrace transformational leadership style, but not laissez-faire leadership. Supervisor’s authoritative leadership style will decrease employee performance. So they should try to avoid this type of leadership style. Contrarily, supervisors should clarify expectations and provide goals and standards to be achieved for the followers







Contents. v





1.0 Introduction. 1

1.1 Background of the Study. 1

1.2 Statement of Problem.. 4

1.3 Purpose of the Study. 4

1.4 General Objective of the Study. 4

1.5   Research Question. 5

1.6 Research Hypothesis. 5

1.7 Scope the Study. 5

1.7.1 Content Scope. 5

1.7.2 Geographical Scope. 6

1.7.3 Time scope. 6

1.8 Conceptual frame work. 6

1.9 Significance of the Study. 6

1.9 Limitation of the Study. 6

1.10 Definition of Terms. 7



2.0 Introduction. 8

2.1 Democratic Leadership Style on Workers Performance. 8

2.2 Autocratic Leadership Style Towards Worker Performance. 10

2.3 Challenges that Affect Workers Performance. 11

2.4 Relationship between leadership Styles and Job Efficiency. 12



3.0 Introductions. 16

3.1 Research Design. 16

3.2 Area of the Study. 16

3.3 Target Population. 16

3.4 Sample Size. 16

3.5 Sampling Techniques. 17

3.6 Data Collection Methods. 17

3.7 Data Collection Tools. 17

3.7.1 Questionnaire. 17

3.7.2 Interview.. 18

3.8 Reliability and Validity of the Study. 18

3.8.1 Reliability. 18

3.8.2 Validity. 18

3.9 Management and Analysis of Data. 18

3.9.1 Data Management 18

3.9.2 Data Analysis. 19

3.10 Ethical consideration. 19



4.0 Introduction. 20

4.1 Research Findings Presentation and Analysis. 20

4.2 Background of Respondents. 20

4.2.1 Age. 20

4.2.2 Gender of the Respondents. 21

4.2.3 Education. 22

4.3. Democratic Leadership Style on workers performance. 22

4.4 Autocratic leadership style and worker performance at Housing Finance Bank. 25

4.5 Relationship between leadership styles and job efficiency at Housing Finance Bank. 28

4.5.1 Respondents responses on whether there are policies and procedures at housing finance to ensure leadership styles in the organization are guaranteed?. 29

4.6 Discussion of the Results. 30



5.1 Overview.. 32

5.2 Summary of Key Findings. 32

5.3 Conclusions and Implications. 33

5.4 Recommendations. 33

5.5 Limitations and Suggestions for Future Research. 35




THE END.. 42




APPENDIX 1II: TIME schedule. 44





Table 1: Showing category of respondents as well as the Sample size………………………17

Table: 2 Distribution of respondents ………………………………………………………..20

Table 3: Age distribution of the respondents ………………………………………..………21

Table 4: Gender distribution of the respondents …………………………………….………21

Table 5 Shows Marital Status of Respondents………………………………………………22

Table 6: Level of Education of the Respondents ………………………….……………….22

Table 7 Showing Responses on which leadership style preferred by employees at Housing Finance Bank……………………23

Table 8: Respondents views of why they chose democratic leadership style……………………………24

Table 9: Responses on support on the adoption of democratic leadership style at Housing Finance Bank…………..24

Table 2: Responses on whether the adoption of democratic leadership style at Housing Finance Bank will motivate employees to work. …………………………….……………..25

Table 3: Responses on whether adoption of democratic leadership style will decrease working moral of employees. ………………………………………………………………..25

Table 12: Responses on support on the adoption of autocratic leadership style at Housing Finance Bank………………………………………………………………….…………….26

Table 13: Responses on whether the adoption of autocratic leadership at work will decrease employee’s morale. ………………………………………………………………………….26

Table 4: Responses on if one of the disadvantages of autocratic leadership style is that it does not deal with individual difference at work ………………….……………………….27

Table 15: Responses on whether the use of harsh leadership at work will increase workers cognitive load i.e. memorization of contents………………………………..………………28

Table 5: Showing responses on if in their opinions they understood the term internal auditing………………………………………………………………………………………28

Table 17: Responses on whether leadership styles have an impact on job efficiency……………………………………………………………..……………………..29

Table 6: Responses on the extent to which leadership styles contribute to productivity at housing finance bank…………………………………………………………………………29




  • Introduction

This chapter provided the description of the background to the study, problem statement, and purpose of the study, the research objectives, research questions, hypothesis, and scope of the study, the significance of the study, limitations to the study and the definition of terms

1.1 Background of the study

Early analyses of leadership, from the 1900s to the 1950s—the classical management period, differentiated between leader and follower characteristics. Frederick Winslow Taylor who is considered to be the founder of scientific management published his book “The Principles of Scientific Management” in 1911 which opened up the horizons of modern management research and development.  He explained that the best way to increase efficiency was to improve the techniques and methods used by workers. People were seen as instruments or machines to be manipulated by their managers. Also, the organization was seen as a bureaucratic, well planned and structured big machine.Taylor initiated time and motion studies to analyze work tasks to improve performance in every aspect of the organization. In the 1920’s Elton May o and his colleagues developed the human relations movement which emphasized that it was beneficial for management to look also into human affairs. In the famous Hawthorne studies they were able to demonstrate the effect of human factor to efficiency (Mayo, 1933). The scientific management movement emphasized a concern for task (output), and the human relations movement stressed a concern for relationships (people). The recognition of these two concerns has characterized the discussion about leadership ever since.The concept of leadership has an ambiguous status in organizational practice, as it does in organizational theory. In practice, management appears to be of two minds about the exercise of leadership. Many jobs are so specified in content and method that within very broad limits differences among individuals become irrelevant, and acts of leadership are regarded as gratuitous at best, and at worst insubordinate. (Katz & Kahn, 1966, p. 300)Leadership style is a key determinant of the success or failure of any organization. A leader is person who influences, directs, and motivates others to perform specific tasks and also inspire his subordinates for efficient performance towards the accomplishment of the stated corporate objectives. Leadership style is the manner and approach of providing direction, implementing plans, and motivating people According to Ngambi et al. (2010), leadership is a process of influencing others’ commitment towards realizing their full potential in achieving a value- added, shared vision, with passion and integrity.  The nature of this influence is such that the members of the team cooperate voluntarily with each other in order to achieve the objectives which the leader has set for each member, as well as for the group. The relationships between the leader and employee, as well as the quality of employees’ performance, are significantly influenced by the leadership style adopted Leadership is life blood of any organization and its importance cannot be underestimated. Many authors have studied this phenomenon, but there is no conscious definition of what leadership is, no dominant paradigm for studying it, and little agreement regarding the best strategies for developing and exercising it (Bennis, 2007; Hackman & Wageman, 2007; Vroom & Jago, 2007). Omolayole (2006) views leadership as that kind of direction, which a person can give to a group of people under him in such a way that these will influence the behaviour of another individual, or group. Ngodo (2008) perceives leadership to be a reciprocal process of social influence, in which leaders and subordinates influence each other in order to achieve organisational goals. Banks have been undergoing changes since the mid of 1990’s in the form of innovative use of information Technology (Kalakota, 1996). Technological innovation such as those available in ATMs, phone banking internet banking and smart card application are taking place at an overwhelmingly fast phase in the global banking industry.  Employee performance has been shown to have a significant positive effect on organizational performance (Collis and Montgomery, 1995). One of the major pitfalls in an organization occurs when managers believe their organizations are constantly operating at the highest level of efficiency, or that they do not require input from their employees (Foot and Hook, 1999). Whetten and Cameron (1998) state that Employee performance is the product of ability multiplied by motivation. Furthermore, Cummings and Schwab (1973) concur with the belief that performance is ultimately an Employee phenomenon with environmental factors influencing performance primarily through their effect on the Employee determinants of performance – ability and motivation

Theorists have divided employees’ performance in two categories: task performance and dispositional performance. Task performance is defined as tasks and responsibilities of each person and related directly to all things that must be done by that person such as monitoring absent or present employee. Proper understanding of this needs definite standards. The other performance is dispositional which help organizational and social network to survive (Kwong, 2003). According to Armstrong, MacDonald and Stillo (2010) “leadership styles influence the level of motivation of an individual and it is very important in employee’s motivation and performance. However, throughout a lifetime, man’s motivation is influenced by changing ambitions and; or leadership style of the entity he works under or the people he socializes with. In line with this, it has been noted that command-and- control leadership drains off ambition while worker responsibility increases ambition”. This reflects that certain style of leadership could affect the job performance of an individual (Piccolo et al., 2010).

All around qualified and skilled personnel are essential in setting of accomplishing goals and objectives of an organization through, compelling leadership and administration styles. The success of an organization depends on the persevering, faithful and included managers and employees (Sakiru, 2014). In this cutting edge period where world has turn into a worldwide town, firms are considered to be aggressive on the basis of capability of their HR

In recent times, many organizations in the Ugandan  banking industry, have recorded cases of immoral and unethical banking practices, gratifications, high labour turnover, inability to meet basic required obligations, and incessant financial distress syndrome, which has led to many banks being merged and acquired. This may be as a result of lack of effective leadership. The prime motive of many organizations is to achieve its stated objectives, hence the need to effectively coordinate and motivate the workers by an effective leader. Unfortunately some organizations do not take cognizance of the leadership style adopted by their managers. It is on this premise that this research work set out to examine effect of leadership styles on workers performance at Housing Finance Bank


1.2 Statement of problem

Leadership in today’s banking industry in Uganda is a tough business. Organization leaders face a number of challenges as their jobs and world around them become increasingly complex. Trends, such as organizational re-structuring, globalization, rapid technological advances, cultural complexity and increasing demand for employee empowerment require that managers adopt techniques and style of leadership to meet these new challenges; thus efficiency in resources mobilization, allocation, utilization and enhancement of organizational performance depends to a large extent, on leadership style; but such is yet to be realized in real life situation of most organizations because of leadership style they adopt. The implication of this is that such organizations do not quickly respond to change and fold up few years after taking off.

Studies by (Kakulu, 1996) identified that leaders influence attitudes of followers, then it is possible that the workers performance is influenced by the leadership style applied by the leader. However, this statement may be too general as to be considered valid because there are no statistics to back it up, and also various styles of leadership exist, one would not know which one to recommend and which to reject. Again, can the prescribed style of leadership remain valid for improved workers performance in the banking industry? And also for every situation faced by an organization, what is the adequate leadership style that will be use to bring about greater performance from the workers or what combination of leadership styles will be more effective or efficient for greater performance in the industry.  This cloudy atmosphere gave rise to the researcher to investigate the effect of leadership styles on workers performance in the banking industry considering housing finance bank as the case study

1.3 Purpose of the study

The study aimed at investigating the effect of leadership styles on workers performance in the banking industry considering housing finance bank as the case study

1.4 General objective of the study

The objective of this study was to identify the style or styles of leadership adopted by the managers, and examine its effect on workers’ performance, which invariably translated to organizational performance

1.4.1 Specific objective of the study

The specific objectives of the study were as follows;

  1. To find out the effect of democratic  leadership  style on workers performance at Housing Finance Bank
  2. To examine the impact of autocratic leadership style towards worker performance at Housing Finance Bank
  • To ascertain other challenges  that affect  workers performance    at Housing Finance Bank
  1. To establish the relationship between leadership styles and job efficiency at Housing Finance Bank

1.5   Research Question

  1. What is the effect  of democratic  leadership  styles on workers performance at Housing Finance Bank
  2. Does autocratic leadership style affect worker performance at Housing Finance Bank
  • What are their other  challenges  that affect  workers performance    at Housing Finance Bank
  1. What is the relationship between leadership styles and job efficiency  at Housing Finance Bank

1.6 Research Hypothesis

  1. Democratic leadership  styles  greatly affects workers performance at Housing Finance Bank
  2. Leadership style dimensions have a significant effect on workers performance at Housing Finance Bank
  • Autocratic leadership style has a significant impact on worker performance at Housing Finance Bank

1.7 Scope the Study

1.7.1 Content scope.

The content scope of the study highlighted issues such as leadership styles, and worker performance as the independent and dependent variables respectively

1.7.2 Geographical scope

The study was carried out at Housing Finance Bank which located on Nakaseero Road opposite Nigerian embassy

1.7.3 Time scope

The study covered all the aspects of Leadership Styles and workers performance of housing finance bank for a period of five years from 2012 to 2017. In view of this, a clear insight about its operations is informed by a sufficient time span of nearly two decades.

1.8 Conceptual frame work

Workers performance
Leadership styles
Leadership styles

Independent variable                                                Dependent variable


1.9 Significance of the study

To manager

Managers in the banking industry can benefit from the study because it will show the leadership style applicable in the banking industry that will improve workers performance to bring about great results.

To organisation/banks

it can help the banks in question to know the appropriate leadership style that will be applicable to bring about improvement in workers performance to yield the desired result. It will help organizations to know which of the leadership styles is applicable for every situation in an organization due to the dynamism of the business environment.

1.9 Limitation of the study

  1. The researcher was constrained financially; since financial support is required for all the study i.e. in binding. typing yet the researcher is a student and may not be able to reach all the requirement
  2. Time constraint; to achieve desired results from any study one needs enough time to critically analyze the situation, therefore the researcher utilized weekends to carry out most of her research activities.
  3. Non response, many respondents  were    hesitant  from  giving   me  the  data  thinking  that  the  researcher   is  doing   the  research   for  personal  financial     However,  the    respondents  will  properly  be  briefed  about  the  motives  of  the  research  Before  they  even  participate
  4. Language barrier, language barriers since in order to acquire the required information you need to use different method like questioning which requires the research to be able to communicate with the respondents in language.
  5. It is possible that not all respondents who were be given questionnaires returned them. Some might be misplaced and this will affect the quality of the study. The time allocated for the study is also not sufficient for one to obtain all the knowledge needed for the study

1.10 Definition of terms

Leader: a person who leads or commands a group, organization, or country.

Leadership: The activity of leading a group of people or an organization or the ability to do this. Leadership involves: establishing a clear vision, sharing that vision with others so that they will follow willingly, providing the information,

Leadership style:   Is the manner and approach of providing direction, implementing plans, and motivating people. As seen by the employees, it includes the total pattern of explicit and implicit actions performed by their leader (Newstrom, Davis, 1993).

Management:  Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization’s resources in order to achieve the objectives of that policy

Banking industry: Is the section of the economy devoted to the holding of financial assets for others, investing those financial assets as leverage to create more wealth, and the regulation of those activities by government agencies

Workers. One that works especially at manual or industrial labour or with a particular material

Industry: Is a collection of firms that are into the same business.

Performance:  is how well a job is been done



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